Hedge Fund Managers

Hedge fund managers face one of their biggest challenges when trying to source new investors. Unfortunately, the current resources available to raise assets are costly and inefficient. BHA offers hedge fund managers a comprehensive and cost-effective solution to finding alternative investors.

One resource managers commonly purchase is alternative investor contact databases. Often used for marketing campaigns to canvass the investor community, these contact databases are typically out of date, which leads to low success rates. They also frequently require extensive in-house resources to execute e-mail or phone canvassing campaigns, which is inefficient and time-consuming.

Another option commonly chosen by managers looking to raise capital is third-party marketers. This option can be a nonstarter for many midlevel and high-end fund managers that want to maintain client relationships in-house. Those managers that use outsourced marketing services report various levels of success. In addition, there is an industry-wide debate regarding the efficacy of third-party marketers and the associated business model. The result has been that many firms have created in-house marketing teams to replace the third-party marketing model. 

BHA provides hedge fund managers with a mandate database—a better marketing solution with three key elements:

  • Matching Technology. BHA’s mandate database has matching technology that facilitates sourcing alternative investors. After a BHA research analyst interviews an investor, the investor’s hedge fund mandate is logged in our system. If the mandate matches a client’s strategy, the mandate is automatically sent to the client’s home page.
  • Filtering Technology. BHA’s filtering technology lets fund managers source investor candidates that are a good fit. BHA clients use filters and screens to research specific investors in the mandate database that the firm would like to approach.
  • Dedicated Research Analyst. Every BHA client is assigned a dedicated research analyst who acts as the firm’s outsourced marketing support staff. The BHA research analyst finds qualified investor leads for clients by canvassing the database and targeting investors. In addition, the research analyst focuses on special projects for clients, such as sourcing investors for upcoming marketing trips or vetting internal databases and updating investor contact information.

Fund managers can quickly identify new investors on the BHA platform through detailed investor profiles. Investor profiles provide a descriptive summary of investors’ current hedge fund interests within several key areas. These areas are highlighted in each investor profile and cover the following investment information:

  • Strategy of the fund
  • Sector interest
  • Region or geographic interest
  • Manager pedigree or track record preference
  • Lock-up preferences
  • Desired returns or performance expectations
  • Allocations sizes

The three elements of the BHA platform—matching, filtering, and a dedicated research analyst—combine to dramatically enhance clients’ allocation pipelines and provide an enormous savings when compared to success fees paid to third parties or associated in-house resources. BHA’s offering has evolved away from the traditional paradigm and offers an effective lead generation solution that reduces the time it takes to identify and target potential investors.

In summary, BHA provides a revolutionary service designed to increase the effectiveness and efficiency of the hedge fund marketing and sales process. The BHA solution combines the valuable resources of an experienced and professional research team with an intuitive Web-based lead generation platform. BHA’s product offering is further differentiated by providing the industry’s largest fully qualified and regularly updated network of alternative investors.

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